§ 1. Mr. Goodhewasked the Chancellor of the Exchequer what steps he has taken to inform those concerned that house-owners letting off part of their homes are assessed for capital gains tax on that part of the value of the property at the time of sale.
§ The Chief Secretary to the Treasury (Mr. John Diamond)The notes enclosed with the return forms explain that full exemption will not be due if only part of the house has been used as the taxpayer's residence. The question of lettings is referred to in the general capital gains tax booklet and in a separate leaflet about owner-occupied houses.
§ Mr. GoodhewIs the Chief Secretary aware that there are many people who, without expecting an early sale of their houses, have let off rooms, and have found subsequently, when they have had to sell their houses, that they are liable to capital gains tax, having believed that they would be relieved of the entire levy?
§ Mr. DiamondIt has been explained in the tax itself, and in the leaflets and tax documents that accompany the tax return, that relief is limited to that part of the house which one owns and occupies.